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Competition, Innovation And Increasing Returns

Author

Listed:
  • Mario Amendola

    (UNIROMA - Università degli Studi di Roma "La Sapienza" = Sapienza University [Rome])

  • Jean-Luc Gaffard
  • Patrick Musso

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur)

Abstract

When firms enjoy increasing returns in presence of a high rate of innovation, competition may obtain due to the continuous changes in demand and cost conditions even when there is no differentiation and the products of competing firms are essentially homogeneous. In this paper we intend to provide theoretical structure to this conjecture, and to confirm it by carrying out a simulation analysis in the case of two firms competing on the market.

Suggested Citation

  • Mario Amendola & Jean-Luc Gaffard & Patrick Musso, 2000. "Competition, Innovation And Increasing Returns," Post-Print hal-03471605, HAL.
    • Handle: RePEc:hal:journl:hal-03471605
    as

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    References listed on IDEAS

    as
    1. Mario Amendola & Jean-Luc Gaffard, 1988. "The innovative choice. An economic analysis of the dynamics of technology," Post-Print halshs-00420361, HAL.
    2. Mario Calderini & Stan Metcalfe, 1998. "Compound Learning, Neural Nets And The Competitive Process," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(4), pages 271-302.
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    Citations

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    Cited by:

    1. Jean-Luc Gaffard, 2009. "Innovation, competition, and growth: Schumpeterian ideas within a Hicksian framework," Springer Books, in: Uwe Cantner & Jean-Luc Gaffard & Lionel Nesta (ed.), Schumpeterian Perspectives on Innovation, Competition and Growth, pages 7-23, Springer.
    2. Jean-Luc Gaffard & Michel Quéré, 2007. "What’s the aim for competition policy: Optimizing market structure or encouraging innovative behaviors?," Springer Books, in: Uwe Cantner & Franco Malerba (ed.), Innovation, Industrial Dynamics and Structural Transformation, pages 393-405, Springer.
    3. Jean-Luc Gaffard & Jackie Krafft, 2001. "Telecommunications: understanding the dynamics of the organization of the industry," Post-Print hal-00203655, HAL.

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